Guide To Select Form of Startup – Private Limited, LLP, OPC, Partnership or Proprietorship
August 31, 2020
FEATURES | Private Limited Company | One Person Company (OPC) | LLP | Partnership | Proprietorship |
---|---|---|---|---|---|
Separate legal entity | ✓ | ✓ | ✓ | ✕ | ✕ |
Limited Liability | ✓ | ✓ | ✓ | ✕ | ✕ |
Number of members | 2-15 | 1 | 2-99 | 2-20 | 1 |
Number of Directors /DP | 2-15 | 1-15 | 2-99 | NA | NA |
Investor Preference | ✓ | ✕ | ✓ | ✕ | ✕ |
Foreign Investment (FDI) | ✓ | ✕ | ✓ | ✕ | ✕ |
Ownership Transfer-ability | ✓ | ✓ | ✓ | ✕ | ✕ |
Perpetual Existence | ✓ | ✓ | ✓ | ✕ | ✕ |
Tax Benefits | High | High | Low | Low | High |
Statutory Compliance | High | Low | Low | Low | Low |
Market Credibility | High | Moderate | High | Low | Low |
Managerial Remuneration | No Limits | No Limits | Upto Limits | Upto Limits | Not Allowed |